Puregold Price Club Inc. · PSE:PGOLD
Puregold Price Club — 9M 2023 Earnings Presentation
37 slides from Puregold Price Club's earnings presentation, November 2023
Slide 1: NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO
NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO NASAIYOANGPANALO
Slide 2: 9M23 Results & Performance
9M23 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation Years of Serbisyong Always Panalo Para Sa Pilipino
Slide 3: Disclaimer
DISCLAIMER These presentations and/or other documents have been written and presented by Puregold Price Club, Inc. (PGOLD). PGOLD is solely responsible for the accuracy and completeness of the contents of such presentations and/or other documents. Third parties, other than PGOLD, do not have any res
Slide 4: Pure Play Philippine Food Retailer
Pure Play Philippine Food Retailer A Proxy for the Philippine Consumption Story • Robust topline growth from an enterprise with the broadest consumer segments • Healthy cash flows and a simple capital structure • Two marquee brands in Philippine retail: Puregold stores and S&R WHs • Beneficiary of a
Slide 5: Puregold Enterprise
Puregold Enterprise • Caters to the low income and low-middle income customers • Lower C, D and E market • Sari sari store customers/resellers • Popular local and small sized SKUs • Robust selling platform for all FMCG cos. doing business in PH • Membership shopping model • Catering to the upper inc
Slide 6: Most Chosen Retailer 2022, Kantar
Most Chosen Retailer 2022, Kantar Puregold recently ranked No. 1 in the Philippines as In addition, Puregold’s impact to consumers was also Kantar’s Most Chosen Retailer. driven upward by its accessibility. With over 445 stores nationwide and increasing footprint in the provinces, In the shopper stu
Slide 7: Shareholder Distribution
Shareholder Distribution YEAR EPS DIV 2016 2 0.4 2017 1.99 0.4 2018 2.24 0.4 2019 2.37 0.45 2020 2.81 0.5 2021 2.85 0.86* 2022 3.24 5YCAGR 10% 17% YoY 14% 72% EPS DIV * In Dec 2022, new dividend policy to declare as dividend at least 30% of income of the previous year 7
Slide 8: Macro Highlights in 2023
Macro Highlights in 2023 SNAPSHOT : PHILIPPINES SNAPSHOT : THE WORLD • Resilient mid-C, D and E markets • Inflationary pressures linger • Sustained strength from A, B and upper C markets • Soft commodities & Brent oil prices strengthening • Employment gains continue • Continued high geopolitical unc
Slide 9: Pillars of Growth 2023
Pillars of Growth 2023 01 02 03 04 05 Store Increase Demand Robust Group Expansion Shopper Count Creation End-to-End Sustainability Supply Chain Objectives • +15% increase • Increase high • Reboot of marketing • “Just in Case” • Improving corporate pace in Puregold- potential shoppers events vs. “Ju
Slide 10: New Independent Directors
New Independent Directors Over 40 years of experience in the financial industry. President and CEO of Development Bank of the Phils. from 2019 to 2023. Best CEO for 2021 by the Association of Developmental Financial Institutions in Asia Pacific. President and CEO of Philippine Import-Export Credit A
Slide 11: New Independent Directors
New Independent Directors Over 30 years of experience in the telecommunications and financial industries. Over 12 years with Citibank in the Philippines, Singapore, Japan, Hong Kong, and New York, with stints in financial control, risk management, product development, treasury audit, corporate audit
Slide 12: Divimart Acquisition
Divimart Acquisition Opportunity •Access to 32 locations instantly •Fit-outs allow for faster store opening – i.e. new PG Stores within 6 months •Leverage on a partnership to find & build more locations for PG Stores Cost •One-time acquisition cost Transaction Overview based on store area •Asset Sal
Slide 13: Store Portfolio – 9M 2023
Store Portfolio – 9M 2023 GEOGRAPHIC COVERAGE KEY STATS NEW PG + S&R STORES 2023 TOTAL NUMBER 558 Opened OF STORES N.Luzon 145 316 hypermarkets 30 new Puregold Stores 98 supermarkets with (21 Divimart 187 Metro Manila NO. OF STORES 67 extras conversion) PER FORMAT 24 S&Rs S.Luzon 53 S&R QSRs 2 S&R W
Slide 14: Operating Performance – 9M 2023
Operating Performance – 9M 2023 REVENUE CONTRIBUTION 32% 68% Puregold S&R 14
Slide 15: 9M23 Financial Highlights
9M23 Financial Highlights CONSO REVENUE GROSS PROFIT EBITDA MARGIN % MARGIN % NIAT 9M23 Php 139.3bn 18.3% 9.9% Php 6.6 bn YoY 9.2% -46 bps -87 bps 2.1% 15
Slide 16: Financial Performance – Conso 9M 2023
Financial Performance – Conso 9M 2023 NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions) 184.3 45 30.0% 168.63 164.12 40 28.0% 139.30 35 33.82 26.0% 127.56 29.16 30.08 30 25.54 24.0% 25 23.97 22.0% 20 18.3% 18.4% 18.8% 18.3% 20.0% 15 17.3% 18.0% 10 16.0% 5 14.0% 0 12.0% 2020 2021 20
Slide 17: Financial Performance – Conso 9M 2023
Financial Performance – Conso 9M 2023 OTHER OPERATING INCOME (in PHP millions) OPERATING INCOME/EBIT (in PHP Millions) 4,500 14.0% 4,000 20,000 20.0% 3,500 3,155 3,210 3,184 12.0% 18,000 18.0% 14,481 3,000 2,243 2,309 10.0% 16,000 13,358 12,942 16.0% 14,000 2,500 8.0% 10,286 14.0% 2,000 12,000 10,03
Slide 18: Financial Performance – Conso 9M 2023
Financial Performance – Conso 9M 2023 EBITDA & MARGIN (in PHP millions) OPERATING EXPENSES (in PHP Millions) 30,000 40.0% 30,000 40.0% 35.0% 25,000 25,000 22,522 35.0% 19,075 30.0% 20,350 20,000 17,680 17,614 20,000 18,953 17,808 30.0% 25.0% 15,923 25.0% 15,000 13,687 13,736 20.0% 15,000 20.0% 10.5%
Slide 19: Financial Performance – Conso 9M 2023
Financial Performance – Conso 9M 2023 NET INCOME & MARGIN (in PHP Millions) 15.0% 12,000 13.0% 10,000 9,287 8,067 8,180 11.0% 6,612 9.0% 8,000 6,474 5.0% 5.0% 6,000 4.8% 5.1% 4.7% 7.0% 5.0% 4,000 3.0% 2,000 1.0% - -1.0% 2020 2021 2022 9M 22 9M 23 Net Income NI Margin 3YCAGR 7.3% 2.1% 19
Slide 20: Financial Performance – Conso 9M 2023
Financial Performance – Conso 9M 2023 NET SALES BREAKDOWN QTR NET SALES TREND in PHP Billions 9.2% 60.0 2023 55.0 95.2 2022 50.0 87.6 8.8% 2021 45.0 2020 40.0 10.1% 40.0 44.1 2019 35.0 30.0 9M 22 9M 23 1Q 2Q 3Q 4Q >> Record 3Q net sales. Best 9M sales trajectory. High Single-digit 9M sales growth Yo
Slide 21: Margin Trends – Conso 9M 2023
Margin Trends – Conso 9M 2023 20.0% 18.3% 18.4% 18.3% >> Groupwide competitive 18.0% 16.8% 17.3% pricing initiatives for market share volume growth tempered GPM 16.0% by effect of joint business plans 14.0% with suppliers EBITDAM 12.0% 10.5% 10.7% 10.3% >> Higher frontloaded OPEX due 9.8% 9.9% to mo
Slide 22: CAPEX Guidance for FY 2023
CAPEX Guidance for FY 2023 CAPEX Budget of Php 11.9 billion in 2023 Php 2.3 billion for 30 new Puregold Stores Php 4.1 billion for 4 S&R WHs and 10 S&R QSRs Php 3.5 billion for logistics capex Php 2.0 billion for maintenance capex, solar projects and IT upgrades 22
Slide 23: Updated Management Guidance 2023
Updated Management Guidance 2023 Consolidated Revenue Growth 8% to 10% target Gross Profit Margin Puregold Stores: 15.5% to 16.5% target S&R WH: 22% to 22.5% target 23
Slide 24: Q&A
9M23 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation Q&A
Slide 25: Thank you
Thank you LO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO O ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO LO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO ANG PANALO NASA IYO AN
Slide 26: Annex
9M23 RESULTS & PERFORMANCE Puregold Price Club, Inc. Presentation ANNEX
Slide 27: Financial Performance 9M23 – PGOLD Only
Financial Performance 9M23 – PGOLD Only NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions) 30,000 160 24.0% 124.03 140 124.3 25,000 120 115.14 20,178 22.0% 95.24 20,000 18,528 18,476 15,666 100 87.56 14,487 20.0% 80 15,000 16.2% 16.5% 16.4% 18.0% 60 16.0% 14.9% 10,000 16.0% 40 5,000
Slide 28: Financial Performance 9M23 – PGOLD Only
Financial Performance 9M23 – PGOLD Only EBITDA & MARGIN (in PHP millions) NET INCOME & MARGIN (in PHP Millions) 15,000 20.0% 18.0% 13,000 16.0% 8,000 15.0% 11,000 9,930 9,471 10,152 7,781 7,457 14.0% 7,000 13.0% 9,000 12.0% 6,000 5,557 11.0% 4,542 3,705 7,000 8.0% 8.2% 8.2% 8.5% 8.2% 10.0% 5,000 4,1
Slide 29: Financial Performance 9M23 – S&R Only
Financial Performance 9M23 – S&R Only NET SALES (in PHP Billions) GROSS PROFIT & MARGIN (in PHP Billions) 80 70 60 60.00 20,000 70.0% 18,000 49.04 60.0% 50 44.61 44.06 16,000 13,642 40.01 14,000 11,607 50.0% 40 12,000 10,628 9,869 30 10,000 9,478 40.0% 8,000 20 6,000 23.8% 23.7% 22.7% 23.7% 22.4% 30
Slide 30: Financial Performance 9M23 – S&R Only
Financial Performance 9M23 – S&R Only EBITDA & MARGIN (in PHP millions) NET INCOME & MARGIN (in PHP Millions) 12,000 50.0% 7,000 30.0% 45.0% 6,000 10,000 8,923 40.0% 4,968 25.0% 7,750 8,209 35.0% 5,000 4,492 8,000 4,000 20.0% 6,230 5,969 30.0% 4,000 3,411 6,000 17.4% 25.0% 2,898 15.0% 4,000 16.6% 14
Slide 31: Financial Performance – 9M 2023
Financial Performance – 9M 2023 SEP 2023 SEP 2022 DEC 2022 Trade Receivables Days 3.2 2.2 3.6 Inventory Days 69 69 60.0 Trade Payables Days 30 20.1 30.9 Cash Conversion Cycle 42.1 51.1 32.8 Notes: 1.Average of inventory at the beginning and end of the period / cost of sales x 363 (for full year)) 2.
Slide 32: Shopper Trends 2023
Shopper Trends 2023 Timely and complete fulfillment More “in-person” Emphasis on value Preference for impactful promotions Strength of traditional channels 32
Slide 33: In-store Brand Refresh
In-store Brand Refresh Modern & dynamic Visuals Communicate value for money by Strengthening local appeal highlighting partner brands, categories, promos 33
Slide 34: Sustainability Highlights 2022
Sustainability Highlights 2022 ECONOMIC CONTRIBUTION PHP 202.1M invested PHP 4.98B taxes paid to PHP 3.14B employee to community including the government wages and benefits LCCK 12,038 total no. of direct employees 0 incidents of corruption 34
Slide 35: Sustainability Highlights 2022
Sustainability Highlights 2022 ENVIRONMENT PERFORMANCE 101M reduction of plastic bags used in 3% Clean electricity used Puregold stores compared to 2018 Rooftop Solar Power in 22 63% of Puregold stores use paper bags S&R Warehouse Clubs, 1 S&R and promote monthly upsizing to Distribution Center, and
Slide 36: Sustainability Highlights 2022
Sustainability Highlights 2022 SOCIAL RESPONSIBILITY 866 scholars 0 legal actions or 56% female employees graduated, 107 passed employee grievance on in the workforce licensure exam, 312 forced and child labor current no. of scholars 760,000+ Puregold Sari- 1.43M Puregold Sari Store members Mobile a
Slide 37: Sustainability Highlights 2022
Sustainability Highlights 2022 37